FY2015 RESULTS AND CORPORATE & BUSINESS UPDATE BRIEFING 1 MARCH - - PowerPoint PPT Presentation

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FY2015 RESULTS AND CORPORATE & BUSINESS UPDATE BRIEFING

1 MARCH 2016

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• 1. Corporate Overview
• 2. Recent Highlights
• 3. Corporate and Business Update
• 4. FY2015 Financial Highlights
• 5. Outlook

BRIEFING AGENDA

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CORPORATE OVERVIEW

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CORPORATE OVERVIEW

Axcelasia Inc. (“Axcelasia”) provides integrated professional services mainly in Malaysia to government-linked entities, private and public listed companies and multinational corporations. Its four key business segments are tax advisory, business consultancy, enterprise management system (“EMS”) application and business support. The Group is led by three Executive Directors, Dr. Veerinderjeet Singh, Dato’ Peter Tang, and Mr. Ranjit Singh, who are industry veterans with more than 95 years’ combined industry experience. Axcelasia was listed on the Singapore Exchange Catalist Board on 27 November 2015.

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BUSINESS SEGMENTS

BUSINESS CONSULTANCY TAX ADVISORY EMS APPLICATION BUSINESS SUPPORT

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TAX ADVISORY

• Tax advisory services are provided by Taxand Malaysia Sdn Bhd
• Taxand Malaysia is a member of Taxand, a global organisation of

independent tax advisory firms consisting of 400 tax partners and

• ver 2,000 tax advisors in 46 countries. Taxand Malaysia remains an

independent firm, and does not share profits and losses with the

• ther Taxand member firms.
• Corporate tax advisory
• Transfer pricing
• Individual tax advisory
• Tax compliance

Taxand Malaysia

• International tax
• GST
• Knowledge management

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BUSINESS CONSULTANCY

• Business

Consultancy services are

• ffered

through Axcelasia Columbus Sdn Bhd and Axcelasia HR Consulting Sdn Bhd

• Strong track record of providing strategic advice to government-linked
• rganisations as well as private and public listed companies which
• perate in various industries
• Governance, Risk & Compliance
• Internal Audit and IT Audit
• Transformation and Programme

Management

• IT Consulting
• Forensic Accounting
• Business Continuity Management
• HR Services
• Change Management
• HR Transformation
• Talent Management &

Succession Planning

• Executive Search & Placement

Axcelasia Columbus Axcelasia HR Consulting

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EMS APPLICATION

• Axcelasia Softnex Sdn Bhd develops and maintains the EMS

Application software for clients

• The

software provides a user interface to input

• perational

information, creating a dashboard view of one’s governance, risk and compliance issues. There are various modules available which can be customised to specific client requirements.

Axcelasia Softnex

• Risk management
• Compliance
• Internal Audit
• ISMS
• Incident
• Insurance

The EMS software modules include:

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BUSINESS SUPPORT

• Business Support services are offered through Axcelasia Corporate

Services Sdn Bhd – which focuses on corporate secretarial services – and Axcelasia Global Business Services Sdn Bhd – which focuses

• n accounting and outsourcing services
• Axcelasia

Corporate Services and Axcelasia Global Business Services handle all internal support services for the Group

• Corporate secretarial services
• Accounting
• Outsourcing services

Axcelasia Corporate Services Axcelasia Global Business Services

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AWARDS AND ACCREDITATIONS

2015: Sustained Excellence in Corporate Tax by Acquisition Intl Magazine 2015: Most Outstanding Tax Advisory Firm by Corporate Intl Magazine 2015: Recommended Tax Firm by International Tax Review (ITR) 2014: Corporate Tax Firm by Acquisition Intl Magazine 2014: International Tax Accountancy Firm by Corporate Intl Magazine 2013: Tier 1 Transactional Tax Advisor – ITR Survey 2013: Tier 1 Tax Planning Advisor – ITR Survey 2012: International Tax Advisory Firm by Corporate Intl Magazine 2012: Corporate Tax Advisory Firm by Acquisition Intl Magazine 2010 : Asia Transfer Pricing Firm of the Year by ITR 2009: Transfer Pricing Firm of the Year – Malaysia – ITR

10 Taxand Malaysia has received the following awards and accreditations:

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RECENT HIGHLIGHTS

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RECENT HIGHLIGHTS

27 November 2015 Listed on Singapore Exchange’s Catalist Board 22 January 2016 Axcelasia Singapore Pte Ltd was incorporated to carry on the business of tax advisory, business consultancy, internal audit, risk management advisory and business support services in Singapore 22 January 2016 Names of Axcelasia’s subsidiaries were changed to reflect the new corporate identity of the Group 10 February 2016 Increased issued and paid-up capital of Axcelasia Singapore to S$500,000

• Dr. James Wong appointed as Managing Director of Singapore
• perations; also holds 25% of Axcelasia Singapore

24 February 2016 Announced FY2015 results (net profit rose five-fold to RM7.9 million on RM25.3 million revenue)

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CORPORATE & BUSINESS UPDATE

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OPERATING ENVIRONMENT

The

• perating

environment has presented

• pportunities

for Axcelasia to capitalise on:

• Formalisation of the ASEAN Economic Community encourages

greater regional cooperation and introduction of new initiatives that will benefit the Group as it expands

• Increasing demand in the region for digital transformation
• Corporates requiring more risk management and risk mitigation

strategies

• Opportunities to leverage on shared services and off-shoring

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CORPORATE AND BUSINESS UPDATE

Three main strategies:

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• Asset-light geographical expansion in Malaysia and ASEAN

region 2

• Expansion of portfolio of services to develop new revenue

streams 3

• Harnessing of economies of scale arising from business

growth

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• Operations in the Klang Valley currently account for bulk of revenue;

Group is targeting other Malaysian cities (Johor Bahru and Penang) and ASEAN region

• Adoption of asset-light strategy – strategic alliances, joint ventures
• r mergers and acquisitions with low start-up and operating costs –

mitigates risks while leveraging on existing clientele

• Professional services sub-sector will benefit from formalisation of

ASEAN Economic Community – Initiatives such as free flow of skilled labour and harmonisation

• f financial regulation
• Target to establish operations in at least three other ASEAN cities

within the next 18 months

• Expects

non-Malaysian

• perations

to commence revenue contribution by FY2016

ASSET-LIGHT

GEOGRAPHICAL EXPANSION IN MALAYSIA AND ASEAN REGION

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• Established an office in Singapore this year

– Initial focus will be

• n

business consultancy before expanding to include tax advisory and corporate secretarial services – Serves as a springboard to other ASEAN countries – Enhances interaction with shareholders and investment community in Singapore

• Dr. James Wong appointed as Managing Director of Axcelasia

Singapore Pte Ltd

ASSET-LIGHT

GEOGRAPHICAL EXPANSION IN MALAYSIA AND ASEAN REGION

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• To offer complementary services to increase value to customers and

attract a wider range of clients

• Diversification will create additional and recurring revenue streams

while enhancing profit

• Identified share registrar services and corporate finance advisory to

start with

• Currently at the planning stage to enter discussions with potential

parties and will provide updates on any material developments

EXPANSION OF PORTFOLIO OF SERVICES

DEVELOP NEW REVENUE STREAMS

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• Group to capture economies of scale as business grows and from

centralising various management and operational functions

• Expertise

in business consultancy gives Group expertise to significantly streamline internal and operating efficiencies as it expands

• Administrative

functions

• f

various subsidiaries have been integrated at Group-level and are expected to translate into cost improvements

• Opportunity to use its Klang Valley operations as a centre for shared

and outsourced services – leveraging on economies of scale including relatively weak Malaysian ringgit

HARNESSING ECONOMIES OF SCALE

ARISING FROM BUSINESS GROWTH

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FY2015 FINANCIAL HIGHLIGHTS

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FY2015 RESULTS SNAPSHOT

RM’000 FY2015 FY2014 Change (%) Revenue 25,300 8,302 204.7 Profit Before Income Tax 9,806 2,089 369.4 Net Profit Attributable To Shareholders 7,866 1,591 394.4 Net Profit Margin (%) 31.1 19.2 11.9 ppt EPS (RM cents) 10.22 for FY2015 NAV per share (RM cents) 21.24 as 31 December 2015 RM’000 31 December 2015 31 December 2014 Total Assets 36,686 5,325 Total Liabilities 2,628 2,383 Cash and Cash Equivalents 28,982 2,870 Total Equity 34,058 2,942

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FINANCIAL HIGHLIGHTS – REVENUE

Revenue By Year (RM’000) FY2015 Revenue Breakdown

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FINANCIAL HIGHLIGHTS – PROFIT

Profit By Year (RM’000)

FY2012 FY2013 FY2014 FY2015 Profit Before Tax Margin 7.2% 9.6% 25.2% 38.8% Net Profit Margin 5.7% 7.7% 19.2% 31.1%

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USE OF IPO PROCEEDS

Use of IPO Proceeds Amount Allocated (S$’000) Amount Utilised (S$’000) Balance (S$’000) Expand business

• perations in Malaysia

and the ASEAN region and enhance range of professional services 6,000 375 5,625 Enhance Group’s office and support infrastructure 500 500 Working capital 1,080 1,080 Listing expenses 1,300 1,300 Total 8,880 1,675 7,205

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OUTLOOK

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OUTLOOK

The Group is optimistic of its performance in FY2016 Non-Malaysian revenue will commence contributions from FY2016 as network of operations across ASEAN increases The Group will build upon its core competencies by exploring strategic alliances or mergers and acquisitions to expand its service offerings Improvement in economies of scale and efficiency with the use of the Klang Valley as a centre for shared services

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THANK YOU

THANK YOU!

Media and Investor Contact Information: WeR1 Consultants Pte Ltd 3 Phillip Street, #12-01 Royal Group Building Singapore 048693 Tel: +65 6737 4844 Ian Lau, ianlau@wer1.net Frankie Ho: frankieho@wer1.net

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